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Alternative performance measures and definitions
Alternative performance measures and definitions Alternative performance measures are used to describe the development of operations and to enhance comparability between periods. These are not defined under IFRS but correspond to the methods applied by Group management and Board of Directors to measure the Company’s financial performance. Alternative performance measures should not be viewed as a substitute for financial information presented in accordance with IFRS but rather as a complement. The Group believes that APMs
such as EBITA* and EBITDA* (*excluding other income and expenses) are commonly reported by companies in the markets in which it competes and are widely used by investors in comparing performance on a consistent basis without regard to factors such as depreciation on fixed assets, amortisation of intangible assets and M&A expenses, which can vary significantly, depending upon accounting methods (in particular when acquisitions have occurred) or based on non-operating factors. Accordingly, the
Group discloses these APMs to permit a more complete and comprehensive analysis of its underlying operating performance relative to other companies and across periods, and of the Group’s ability to service its debt. Because companies may calculate EBITA and EBITDA, and EBITA and EBITDA margin differently, the Company’s presentation of these APMs may not be comparable to similar titled measures used by other companies.
ADDRESSABLE TENDER PIPELINE The total of any tender processes above NOK 30 million expected to be made available during the next nine months and relevant for the Group, based on the current group operations, to consider participation.
CONTRACT VALUE The amount stated in the contract for contract work excluding VAT.
order backlog accounted for as part of the purchase price allocation under business combinations and IT software investments.
BOOK-TO-BILL ratio The nominal value of orders received divided by external revenue for the corresponding period. BOOK-TO-BILL ratio LTM The nominal value of orders received last twelve months divided by external revenue for last twelve months.
EBT Profit before tax. EBIT Operating profit. EBIT % Operating profit in relation to operating revenues. EBITA Operating profit plus amortisations on intangible assets, including intangible assets such as customer relations and
EBITA % EBITA in relation to operating revenues. EBITDA EBITA plus depreciations on fixed assets and right-to-use assets. EBITDA % EBITDA in relation to operating revenues. EBIT*, EBITA* and EBITDA* (ex M&A) EBIT, EBITA and EBITDA plus other income and expenses.
